Yes, classic American suburb. And it IS cheaper.
The houses themselves tend to be more expensive because they tend to be larger. But the _services_ do NOT significantly differ in cost!
The problem is that construction and maintenance in cities is FREAKING EXPEN$$$$IVE. For example, Greater Houston Area is mostly suburban and has similar population as NYC. Yet GHA spends 2.5 _times_ _less_ per capita. If you look at specific services, it's a wash. Police is slightly cheaper in suburbs, sewer is more expensive, water is similar, electricity is cheaper.
If you're a local government trying to figure out how to house 100 families for the next 30 years, for example, it will definitely be cheaper to throw down a few 3-5 story apartment buildings than to build 100 single family homes. Especially if land in your area is expensive.
Nope. It's cheaper to ban all commercial construction larger than 2 stories and just shoot everyone who proposes densification.